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TCS by seller

Surya Phani (25 Points)

04 September 2022

can anyone tell me whether TCS increases the cost of the asset

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2 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (167329 Points)
Replied 04 September 2022

Not at all. Its accounted separately under current asset, & is refundable.

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MPR Sanjay Kumar (3100 Points)
Replied 04 September 2022

As per Accounting standard 2 valuation of inventories, RAW MATERIAL should be valued at cost ( if finished good sir above the selling price of this) otherwise replacement cost

for an example I purchased certain raw materials for manufacturing at the cost Rs . 50,000 ,at the processing of my manufacturing I need additional raw material so I am purchasing additional raw material on the date raw material prices 40,000..... finally my net realisable value of my finished goods is rupees 3,0000

in this case in my books of accounts can I value the inventory lower of cost rupees 30000 it is correct or not??

please guide me

Special query: Replacement cost means current market price but when we require this replacement cost for example if any additional raw materials needed we are going to purchase that's it or not??